Decree No. 07/2016 / ND-CP regulating the Commercial Law
regarding representative offices and branches of foreign traders in Vietnam
that have recently been issued by the Government.

Accordingly, foreign
traders can establish their representative offices and branches
in Vietnam under Vietnam’s commitments in international
treaties to which Vietnam is a member. A foreign trader cannot establish more
than one representative office or branch with the same name within a province
or city under central authority.

Foreign traders are
licensed to establish representative offices when they meet five conditions:

– Foreign traders can
establish and register for business in accordance with law of nation and
territories participating in international treaties in which Vietnam is a
member, or recognized by the law of those nations and territories.

– Foreign traders that
have been in operation for at least one year from the date of establishment or
registration.

– In case the
certificate of business registration or papers with equivalent value of the
foreign traders have prescribed the time limit for operation, then the duration
must be at least 1 year from the date of submitting record.

– The operation of the
representative office must match the commitment of Vietnam in the international
treaties in which Vietnam is a member.

– The case where the
operation of the representative office is inconsistent with Vietnam’s
commitments or foreign traders do not belong to any nations and territories
participating in the international treaties in which Vietnam is a member, the
establishment of representative offices must be approved by the Minister of
specialized management.

The Decree also
stipulates the conditions for foreign traders to be granted licenses to
establish their branches. Specifically, foreign traders will be licensed for
the establishment of branches when they meet 5 conditions:

– Foreign traders can
establish and register for business in accordance with law of nation and
territories participating in international treaties in which Vietnam is a
member, or recognized by the law of those nations and territories.

– Foreign traders that
have been in operation for at least five year from the date of establishment or
registration.

– In case the
certificate of business registration or papers with equivalent value of the
foreign traders have prescribed the time limit for operation, then the duration
must be at least 1 year from the date of submitting record.

– The operation of the
branch office must be consistent with the market-opening commitments of Vietnam
in the international treaties in which Vietnam is a member, and in line with
the business lines of the foreign trader.

– If the content of the
branch operation is inconsistent with Vietnam’s commitments or foreign traders
do not belong to any nations and territories participating in the international
treaties in which Vietnam is a member, the establishment of branches must be
approved by the Minister of specialized management.

The license for theestablishment of representative office and
branch of foreign traders have a term of 5 years but does not exceed the
remaining term of the certificate of business registration or papers of equivalent
value of the foreign trader in the case that those papers contain provisions on
the term.